reverse stock split
- noun
- /rɪˈvɜrs stɑk splɪt/
- Specialized
:
consolidación de acciones
- A reverse stock split can increase the share price.
Examples
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To attract more institutional investors, the firm decided to implement a reverse stock split of 1-for-10.
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The company announced a reverse stock split to raise the per-share price above the minimum required by the stock exchange.
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A reverse stock split is often used to attract institutional investors by increasing share price.
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After the reverse stock split, shareholders owned fewer shares, but each was worth more.
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The company announced a reverse stock split yesterday.
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The company announced a reverse stock split to consolidate its shares and improve its market value.
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After the reverse stock split, each shareholder received fewer shares, but the total investment value remained unchanged.
Synonyms
Reduce the number of a company's shares so each share is worth more without changing total investment value
Antonyms
- Specialized
2
5.5
A change by a company that gives each owner more shares while keeping their total value the same
Surface Forms
Morphology
The phrase is compositionally built from 'reverse' + 'stock split' and thus signals the opposite of a stock split (i.e., consolidation/reduction of outstanding shares), so its logic is derivable if the learner knows the technical sense of 'stock split'. However, 'stock split' is a specialized financial term that many B1 learners will not know, so understanding the exact corporate effect requires domain knowledge rather than just basic constituent meanings.
Etymology
Reverse stock split paints a clear picture: a split usually means cutting something into pieces, but reverse means doing the opposite, joining many small stock shares into fewer larger ones. That's why the company keeps the same total value for shareholders, but each share is worth more.